Exactly. Say that the auction starts $1, and you decided to bid (well in advance) $100. Another bidder could bid in even $1 increments until the $100 mark is reached. At $90, the bidding algorithm would require your competitor to bid $91, and so on. But on hitting $100, the bidding algorithm would reveal your high bid at $100, and that you are still the high bidder, since yours was first.

Now let's say that Bidder 2 was a shill. Say Cletis, the toothless cousin of the seller. I know, this is illegal, but so is speeding. I would say that Cletis just earned his cousin an extra $99.

I have bought hundreds of bike-related things off of Ebay. Still do. Here is my wisdom:

• Never bid with more than a few seconds left in the auction. Assume with every big ticket item, you are bidding against shills and irrational bidders. Always snipe.
• Never bid in even dollar increments. Never bid in predictable increments.
• Never accept 'second chance' offers. These are just cases where shill bots were used to reveal your highest bid, and extract a higher sale price from you. Never decline second chance offers. Let the seller wait it out while they expire...

Bottom line: the higher the final sale price, the greater the fees back to Ebay.